Double Bottom and Bullish Divergence on TGT
Updated
As you can see, the price action is contained within a descending broadening wedge at the moment, which has appeared to have found a double bottom, with Class A Bullish Divergence on the MACD and Class B Bullish Divergence on the RSI. From my entry point at $92.84, if the trade reaches the 382 fib retracement, that would be a 9.23% gain. If it reaches Dow's 50% retracement, then it will be 12.83%, and if it goes so high as to reach the top of the descending broadening wedge where it will run into the 618 Golden Zone as well as the 200 and 50 day moving averages as resistance, I will see a profit of 16.44%.
It's worth noting that bullish divergence is not as reliable in a bear trend.
None of this is financial advice, and I am not employed or affiliated with Apollo Trading in any way. I am, however, interested in hearing critiques and criticisms of this idea.
It's worth noting that bullish divergence is not as reliable in a bear trend.
None of this is financial advice, and I am not employed or affiliated with Apollo Trading in any way. I am, however, interested in hearing critiques and criticisms of this idea.
Trade closed: target reached
Not only was the third target reached, but Target continued to rise to the 1.414 fib extension. I have published a new idea based on its current position at the 1.414 as an ascending triangle and inverse head & shoulders as a potential breakout. Please look at that idea and follow it to see if we can get confirmation of that breakout before entering the trade.
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